Department of Accounting Education

Mabini Street, Tagum City

Davao del Norte
Telefax: (084) 655-9591, Local 116

Big Picture in Focus: ULOb. understand the technical aspect

of the feasibility study.

Metalanguage
In this section, the most essential terms relevant to the study of curriculum and to
demonstrate ULOb will be operationally defined to establish a common frame of
reference as to how the texts work in your chosen field or career. You will encounter these
terms as we go through the study of taxation. Please refer to these definitions in case you
will encounter difficulty in the understanding educational concepts.
1. Feasibility Study. Is an analysis that takes all of a project's relevant factors into
account—including economic, technical, legal, and scheduling considerations—to
ascertain the likelihood of completing the project successfully. Project managers
use feasibility studies to discern the pros and cons of undertaking a project before
they invest a lot of time and money into it.

Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the first two (2)
weeks of the course, you need to fully understand the following essential knowledge that
will be laid down in the succeeding pages. Please note that you are not limited to
exclusively refer to these resources. Thus, you are expected to utilize other books,
research articles and other resources that are available in the university’s library e.g.
ebrary, search.proquest.com etc.

The Technical Aspect of a project feasibility study will cover the following:
I. Production Program
II. Plant Capacity
III. Materials and Inputs
IV. Location and Site
V. Process Engineering

1. Production Program
The following areas will be covered:
1.1. Data and alternatives
1.1.1. Describe the data required to set up a production program
1.1.2. Describe possible alternative production programs
1.2. Selection of production program
1.2.1. State reasons for selection
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

1.2.2. Describe in detail the production program

1.3. For emissions such as:
1.3.1. wastes and affluent dust, fumes, noise
1.3.2. quantities of emissions
1.3.3. time schedule
1.3.4. means of treatment
1.4. Estimate cost of estimates disposal
1.4.1. Treat
1.4.2. Disposal in dumps and/or sewage system

2. Plant Capacity
Coverage of the study for this part follows:
2.1. Data and alternatives
2.1.1. Describe data for the determination of plant capacity
2.1.2. List possible alternatives on plant capacity
2.2. Determination of feasible normal capacity
2.2.1. Select and describe in detail the feasible normal plant capacity
2.2.2. State reasons for selection
2.2.3. Describe nominal maximum capacity

3. Materials and Inputs

3.1. Data and alternatives
3.1.1. Describe the data for selection of materials and inputs
3.1.2. List all required materials and inputs and show alternatives
3.1.3. Selection and description of materials and inputs
3.2. Supply program
3.2.1. Describe fundamental data for the preparation of the supply program
3.2.2. Prepare supply program, show alternatives

4. Location and Site

This will cover the study of the following issues:
4.1. Location
4.1.1. Data and alternatives
4.1.1.1. Describe the fundamental data and requirements on the locations
for plant operation
4.1.1.2. List possible locations, describe and show them on maps of
appropriate scale
4.2. Site
4.2.1. Data and alternatives
4.2.1.1. Describe the fundamental data and requirements on site for plant
erection and operation
4.2.1.2. List possible locations, describe and show them on maps of
appropriate scale
4.2.2. Site selection
4.2.3. Cost estimate
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

4.2.3.1. Investment
4.2.3.2. Production costs
4.2.3.3. Local condition
4.2.3.4. Environment impacts

5. Process Engineering
This area of the feasibility study covers the following:
5.1. Project layouts
5.2. Scope of project
5.3. Technology
5.4. Equipment
5.5. Civil engineering works

Self Help: You can also refer to the sources below to help
you further understand the lesson.

Cabrera, M.E (2017). Management Accounting: Concepts and Applications. GIC

Enterprises & Co.

Bobadilla, D. (2015). Comprehensie reviewer in management advisory services. Manila,

Philippines: Lares Bookstore.

Guia, M. B. M.(2016). Basics of managerial accounting. Ma-a, Davao City: MS Lopez

Printing & Pub.

Let’s Check!
I. Questions:

1. What are the data required to set up a production program?

________________________________________________________
________________________________________________________
________________________________________________________

2. What will the project engineering aspect cover?

________________________________________________________
________________________________________________________
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

In a Nutshell
In this part you are going to jot down what you have learned in this unit. The said
statement of yours could be in a form of concluding statements, arguments, or
perspective you have drawn from this lesson.
Now it’s your turn!
1. ________________________________________________________.
2. ________________________________________________________.
3. ________________________________________________________.
4. ________________________________________________________.
5. ________________________________________________________.

Q&A List
Do you have any question for clarification?

Questions/Issues Answers

1.

2.

3.

4.

5.

Keywords index
Relevant costs Shutdown costs
Cost to make Shutdown point
Cost to buy Constraint resources
Opportunity cost Segment margin